NCTO expressed strong support for preservation of the current exemption of USMCA-qualifying trade from International Emergency Economic Powers Act (IEEPA) tariffs imposed to curb the flow of illicit fentanyl and illegal migration, while also calling for a similar exemption for qualifying trade under the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR) currently subject to IEEPA reciprocal tariffs, in public comments submitted to the US Trade Representative’s (USTR) office.

Welcoming the review of the US-Mexico-Canada Agreement (USMCA), the US National Council of Textile Organizations recently urged the US administration to strengthen and extend the trade deal.
Meanwhile, AAFA and nine other fashion and retail trade bodies from the US, Canada and Mexico also wrote to the USTR requesting him to preserve the trilateral pact and extended it for 16 more years.

Meanwhile, the American Apparel & Footwear Association (AAFA) and nine other fashion and retail trade bodies from the United States, Canada and Mexico also wrote to the USTR requesting him to preserve the trilateral agreement and extended it for 16 more years.

“The USMCA’s clear, predictable rules of origin have been critical for our industries, and we believe overly burdensome and complex requirements would create unnecessary barriers and increase costs for businesses and working families,” they wrote.

“Further, maintaining duty-free access for USMCA-qualifying goods and avoiding additional tariffs, including under Section 232 of the Trade Expansion Act of 1962, for such goods is essential to enhancing supply chain integration and ensuring the region remains globally competitive,” the trade bodies said.

“We also urge the Administration to provide sufficient advance notice and clear compliance guidance prior to making any changes to the agreement,” they said.

The US textile industry ships $12.3 billion, or 53 per cent, of its total global textile exports to Mexico and Canada—by far the largest export markets for American textile producers. Those component materials often come back as finished products to the United States under the USMCA.

Key areas outlined by the NCTO for improvement of the USMCA include preserving and strengthening the agreement’s yarn-forward rule of origin, by limiting harmful exceptions to the rule, such as tariff preference levels and single transformation rules that weaken regional supply chains and disadvantage US manufacturers, and strengthening USMCA customs enforcement cooperation.

Fibre2Fashion News Desk (DS)

The agreement follows trade discussions and aims at stabilising bilateral maritime and economic ties.

The United States and China recently agreed to suspend for a year beginning November 10 their respective port service fees on vessels with a US or Chinese nexus.
The agreement follows trade discussions in Seoul and aims at stabilising bilateral maritime and economic ties.
Further clarification is awaited, including whether fees will continue to be charged in the interim period up to November 10.

A White House fact sheet confirms that a ‘trade and economic deal’ was reached in South Korea between US President Donald Trump and his Chinese counterpart Xi Jinping.

“The United States will suspend for one year, starting on November 10, 2025, implementation of the responsive actions taken pursuant to the Section 301 investigation on China’s Targeting the maritime, logistics and shipbuilding sectors for dominance. In the meantime, the United States will negotiate with China pursuant to Section 301 while continuing its historic cooperation with the Republic of Korea and Japan on revitalizing American shipbuilding,” the fact sheet said.

Following the US suspension, China will also suspend implementation of its countermeasures against the United States for a year, the Chinese Ministry of Commerce said.

Further clarification is awaited, including whether fees will continue to be charged in the interim period up to November 10.

Fibre2Fashion News Desk (DS)

The manufacturing PMI registered 48.7 per cent in October—a 0.4-percentage point (pp) decrease compared to 49.1 per cent in September.

Economic activity in US manufacturing contracted in October for the eighth month in a row, following a two-month expansion preceded by 26 straight months of contraction, the ISM manufacturing PMI report said.
Textile mills; apparel, leather & allied products; furniture & related products; petroleum & coal products; and chemical products were among the 12 sectors reporting contraction in October.

Textile mills; apparel, leather & allied products; furniture & related products; petroleum & coal products; and chemical products were among the 12 sectors reporting contraction in October.

“The overall economy continued in expansion for the 66th month after one month of contraction in April 2020,” said Susan Spence, chair of ISM’s manufacturing business survey committee.

A manufacturing PMI above 42.3 per cent, over a period of time, generally indicates an expansion of the overall economy.

The new orders index contracted for the second month in October following one month of growth; the figure of 49.4 per cent is 0.5 pp higher than the 48.9 per cent recorded in September.

The October reading of the production index (48.2 per cent) is 2.8 pps lower than September’s 51 per cent.

The prices index remained in expansion, registering 58 per cent, down by 3.9 pps compared to the 61.9 per cent in September.

The backlog of orders index registered 47.9 per cent, up by 1.7 pps compared to 46.2 per cent in September. The employment index registered 46 per cent, up by 0.7 pp from September’s 45.3 per cent.

“The supplier deliveries Index indicated slower delivery performance for the third consecutive month after one month in ‘faster’ territory, which was preceded by seven consecutive months in ‘slower’ territory. The reading of 54.2 per cent is up 1.6 percentage points from the 52.6 per cent recorded in September,” Spence noted.

The inventories index registered 45.8 per cent, down by 1.9 pps compared to September’s 47.7 per cent.

The new export orders index reading of 44.5 per cent is 1.5 pps higher than 43 per cent registered in September. The imports index registered 45.4 per cent, 0.7 pp higher than September’s reading of 44.7 per cent.

“In October, US manufacturing activity contracted at a faster rate, with contractions in production and inventories leading to the 0.4-percentage point decrease of the manufacturing PMI. A chain reaction of one-month index improvements started with new orders in August and flowed to production in September. In October, it manifested in a 1.7-percentage point increase in the backlog of orders index. These short gains have not appeared to translate into sustained growth for the sector, a reflection of continuing economic uncertainty,” Spence added.

Fibre2Fashion News Desk (DS)